Complete the requirements of CP10-6, assuming Southwest Corporation uses simplified effective-interest amortization shown in Chapter Supplement 10C.
Question:
Requirement CP10-6
Required:
1. Compute the cash received from the bond issuance in dollars (show computations).
2. Give the journal entry to record the issuance of the bonds.
3. Give the journal entries to record the payment of interest on December 31, 2015 and 2016.
4. How much interest expense would be reported on the income statements for 2015 and 2016? Show how the liability related to the bonds should be reported on the balance sheets at December 31, 2015 and 2016. Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
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Req 1 Face value x Quoted price Bond issue price 600000 x 104 624000 received for the ...View the full answer
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Related Book For 
Fundamentals of Financial Accounting
ISBN: 978-0078025914
5th edition
Authors: Fred Phillips, Robert Libby, Patricia Libby
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